Corporations Act 2001
CHAPTER 6A
-
COMPULSORY ACQUISITIONS AND BUY-OUTS
PART 6A.1
-
COMPULSORY ACQUISITIONS AND BUY-OUTS FOLLOWING TAKEOVER BID
Division 3
-
Compulsory buy-out of convertible securities
SECTION 663C
RIGHT OF HOLDERS OF CONVERTIBLE SECURITIES TO BE BOUGHT OUT
663C(1)
Within 1 month after notice under section 663B is given in relation to convertible securities, the holder of the convertible securities may give the bidder a notice requiring the bidder to acquire the securities.
663C(2)
The holder ' s notice gives rise to a contract between the holder and the bidder for the sale of the securities on: (a) the terms agreed to by the bidder and the holder; or (b) the terms determined by the Court on application by the holder.
663C(3)
If the Court makes a determination under paragraph (2)(b) in relation to the terms of sale for a holder ' s securities of a particular class, the determination applies to all holders of securities in that class who have applications to the Court pending for a determination under that paragraph in relation to the terms of sale of their securities.
Modifying legislative instruments: The application of Ch 6A is affected by the following legislative instruments that commenced on or after 1 January 2022: ASIC Corporations (Compulsory Acquisitions and Buyouts) Instrument 2023/684.
For legislative instruments or class orders before 1 January 2022 that affect the application of Ch 6A, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
Within 1 month after notice under section 663B is given in relation to convertible securities, the holder of the convertible securities may give the bidder a notice requiring the bidder to acquire the securities.
663C(2)
The holder ' s notice gives rise to a contract between the holder and the bidder for the sale of the securities on: (a) the terms agreed to by the bidder and the holder; or (b) the terms determined by the Court on application by the holder.
663C(3)
If the Court makes a determination under paragraph (2)(b) in relation to the terms of sale for a holder ' s securities of a particular class, the determination applies to all holders of securities in that class who have applications to the Court pending for a determination under that paragraph in relation to the terms of sale of their securities.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.